Journalist
- Solana’s NFT sales volume and transactions dipped last month.
- SOL’s price action remained bearish, and indicators suggested a further price drop.
Solana [SOL] witnessed a year-long summer in its NFT ecosystem as the blockchain outperformed its competitors. However, Solana’s NFT metrics started to decline in the past month. Meanwhile, the token’s price action also turned bearish.
Solana’s NFT ecosystem is shining bright
SolanaFloor, a popular X handle that posts updates related to the blockchain, posted a tweet highlighting SOL’s commendable performance.
As per the tweet, SOL outperformed every other chain, including Bitcoin [BTC], Ethereum [ETH], and Polygon [MATIC], in yearly NFT blockchain user adoption.
While SOL’s number of users grew by 33% in the past 365 days, MATIC, BTC, and ETH’s users grew by 29%, 10%, and 21%, respectively.
AMBCrypto’s look at DappRadar’s data revealed that MadLads, Frogana, and Sharx by sharky.fi were the top NFT collections on Solana, which might have contributed towards the aforementioned achievement.
Despite promising 365-day growth, things started to change in the last month. AMBCrypto’s look at Cryptoslam’s data pointed out that SOL’s NFT sales volume dropped by over 36% last month, as did its total number of buyers and sellers.
Its total NFT transactions also dipped by 11%. Santiment’s data also corresponded to this, as SOL’s NFT trade count sank sharply over the past month.
Solana tokens’ price has also fallen, despite the NFT metrics of Solana dipping. CoinMarketCap ( )states that SOL’s value was lower than 25% in the last month.
The token value has dropped by 7 percent in just the past 24 hours. SOL, at the time this article was written, traded for $145.55 and had a capitalization over $65 billion. This made it the fifth largest cryptocurrency.
A decline in the price of SOL also affected its social metrics. SOL’s volume on social media has decreased over the last month. This reflects a decline in popularity within the crypto-space.
Moreover, Solana’s weighed sentiment remained in the negativity zone the majority of days. It was clear that the bearish sentiment surrounding the token was dominating the market.
Santiment.
AMBCrypto analyzed then the daily chart of the token to determine if this price decline would last longer. Both SOL’s Relative Strength Index and Money Flow Index started to fall and headed even further below neutral.
Solana [SOL] ‘s Price Prediction.
The token price failed to rise above the 20-day Simple Moving Average, as indicated by Bollinger Bands. All of these technical indicators suggested that SOL could experience a price drop over the next few days and weeks.
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